Optical recording Corp (ORC) was entitled to a technology known as optical digital audio recording. At the time it took to negotiate the final transfer of ownership of the technology, there were rumors that some major electronics manufacturers are developing compact disc (CD) player signed to the optical digital audio signals. Patent lawyer advised ORC, that CD players and CDs recently released these companies may be contrary to the requirements of the newly acquired patents orc. Based on this information, the company began negotiations successfully licensing agreements with the two largest producers of CD. Third-largest producer, WEA production subsidiary, Time Warner, Inc holds the position of non-infringement and invalid patents. With the expiration of U.S. Patent date looming, ORC decided to sue Time Warner for patent infringement. When the lawyer presented evidence that cast doubt on the integrity of the license agreement, the president of ORC realized that all the licensing program was in danger and have to decide whether he should accept a settlement or continue the trial. "Hide
by Paul Beamish, John Adamson Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: December 6, 2001. Prod. #: 901M59-PDF-ENG
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